German utility RWE AG, which was picked by the previous cabinet for a 49% stake in the multi-billion Belene plant, is determined to stick to the project even if the price tag towers to EUR 10 B, local reports say.

The information, published in the latest edition of Trud daily and citing insiders to the project, contradicts reports by Financial Times Deutschland, according to whose sources the utility plan to expand in Bulgaria's nuclear market is on the brink of collapse because of lack of financing.

A day earlier Bulgaria's Prime Minister Boyko Borisov received a congratulatory address by Jurgen Grossman, CEO of RWE, on the occasion of his election victory and his swearing in as head of government.

The letter was seen as a positive sign for the future construction of the Benele nuclear power plant, an unexpected development after the project was vehemently opposed by the new finance and economy ministers.

Bulgaria's previous Socialist-led government chose last year German power utility RWE to become a strategic partner in the Belene project with a stake of 49%. State power utility NEK, which has a majority stake in the plant, contracted Russia's Atomstroiexport to build the two 1,000 megawatt reactors.

The coalition did not leave a stone unturned in its attempts to secure Russian funding for the construction of Belene nuclear power plant shortly before its term expired in the summer.
It started talks with the Russian government on a EUR 3.8 B state loan for the project and offered guarantees for it.

The new government of the center-right GERB party says it is not willing to provide any state guarantees for loans and will make a thorough analysis and research before deciding on the future of Belene.

Bulgarian energy experts and some rightist parties have called for a halt, saying the loan will translate into a BGN 1300 tax burden for each Bulgarian taxpayer, electricity hikes for decades on end, outdated and dubious Russian nuke units.

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